Ive been using the same accountant for 4 years and he is an absolute joke and cost me nearly $1000 in penalties! I have been looking at other accounts but with filing date coming up quickly, i was speaking with a family member (who used to own a small business they recently sold) and they brought up turbotax business. Has anybody had any experience with filing their own taxes on any programs or turbo tax? We are about a month and a half out from filing date and i need to do something quick!
I’m not an accountant. Mine has made a few mistakes over the years but she has always paid whatever penalty occurred. You just need a better accountant
Don’t do your own taxes. You can find a decent accountant for hundred bucks more than turbo tax will cost and he will save you money.
Im not accountant either thats why i was hoping for a simple program for deductions and what not. My account filed an extension and didnt mention the fact we had to send in an estimate payment (how would i know an estimate when he had all my stuff) waited until the VERY LAST DAY of my extension then filed. Paid it the day after and then got penalized close to $1,000 for late payment. Called multiple times, no response.
Yeah, find a different accountant. I know that’ll be tough this time of year, though.
Up till this year, I used TaxAct. We were sole proprietorship, though, with a pretty straightforward return. Just service income from the business, no other sources of income. No unusual deductions. TaxAct is fairly user friendly and intuitive. But not really a longterm solution for a serious business.
As has been stated a good accountant will save you money, filing the extension is no big deal we do it almost every year but that has to do with how I fund my retirement more than anything else. You do have to pay the estimated tax owed in Apr. and the accountant knew that. I would try to find him and get them to pay the fine. They are supposed to be working for you. There are places to report them if they are unethical, should you be so inclined.
CPA have EO coverage.
They should pay
I’ve been through a long line of crappy accountants over the past few years, and racked up some hefty penalties while I was at it. Had one that got hacked and took a weeks payroll and couldn’t give it back for months. I should mention that this happened the day before my wedding, and I literally got married with the cash in my tux pocket so I could pay my people who were at my wedding. Had another one who never paid our sales tax, Hired a third one to fix everything, and they literally forgot to do the bookkeeping that I was paying for, and screwed my situation up even more. I finally said F this and fired them.
In 2017 I started doing my own bookkeeping (its really not that hard), keeping up with the taxes due during the year and then passing all the info and my QBO login to a local CPA to file my annual returns. I let the CPA handle the annual stuff because he knows how to tackle the deductions and such.
For the most part, the thing I have to keep tabs on is sales tax. My payroll company impounds and pays those taxes, and the forms for estimated taxes come with my previous year’s return. Aside from the final filings, I go through weekly and put my 20% and sales tax in a separate bank account.
I’m a little nervous about this year’s filing because of the new tax laws, but I have a nice little cushion in the tax account to handle that.
We don’t collect sales tax on service work. We do have to pay taxes every two weeks on payroll and quarterly taxes. I couldn’t even fathom doing that on my own
Might want to check with your state laws, you might be required to pay sales tax and it WILL come back to bite you in the ■■■ (been there).
Quarterlies are easy for federal taxes. Whatever you pay this year, you divide it by 4 and make 4 payments of that number throughout the year. It doesn’t mean you’re off the hook if you make more money and owe more tax, but it takes care of a large chunk of the burden. (Edit - the forms are called 1040 ES)
Actually, i hate to be the naysayer, but I’ve been in hot water with the IRS, so I’ve been there. If you’re not paying quarterlies the IRS will levy fines on the amounts owed. I didn’t know that a few years ago and got a bill for $387 a few weeks after tax day.
Not to mention paying your quarterlies off well before theyre actually due and getting it over with brings you closer to “Tax Freedom Day” each year. The final payment for 2018 was due 2 weeks ago, but I was done with it in July. I still put my share away in the tax account after that. Whatever the (hopeful) excess is when my accountant gets my annuals back is going right in my pocket
No sales tax in NC. Basing quarterly of off last year can get you in a bind sometimes. She figures ours every couple of months to get it as close as possible. But, like you said, get a good accountant
Taxes? You guys pay taxes?
Your accountant should pay the penalty or work to get it waived.
a little late now… i was thinking of contacting him just to give him hell over the penalties but i dont want to go with him again this year and dont even feel like speaking with him lol
Yes and the sales tax sucks, I hate it. Customers are used to it but it still is not fun to have to charge it and mess with it. 8.25%. When I first started up I called into the state to find out and they went back and forth three times on whether I should charge for pressure washing, which was very uncomforting, but they landed on yes.